GMR achieves financial closure for highway project

Bangalore, Sep 26 (UNI) The Adloor Yellareddy-Pochanpalli road project in Andhra Pradesh awarded to the GMR Consortium, comprising GMR Infrastructure Limited and GMR Energy Limited, achieved its financial closure yesterday.

The company, in a release here, said the capital cost of the project, totalling Rs 690 crore, would be met by way of equity and debt. The debt component of Rs 552 crore, syndicated by ICICI Bank Limited, had been tied up with nine bankers -- Central Bank of India, Punjab National Bank, Andhra Bank, Bank of India, SIDBI, United Bank of India, Bank of Baroda, Vijaya Bank and ICICI Bank--, while the equity component was Rs 138 crore.

The project had a debt-equity ratio of 4:1. Though the total term debt requirement for the project was Rs 552 crore, the consortium received sanctions of Rs 780 crore from the participating banks.

The debt repayment period was 15 and a half years, the release said.

The National Highways Authority of India (NHAI) had invited bids from the empanelled shortlisted road development agencies for the improvement, operation and maintenance of the NH-7 section between Adloor Yellareddy-Pochanpalli last year. GMR consortium had won the bid for strengthening and widening the existing two-lane road to four-lane dual carriageway for 112 km on BOT (annuity) basis for a concession period of two decades. The concession agreement of the project was signed on March 31, 2006.

The release said the group had also achieved financial closure for the Ambala-Chandigarh and Farukhnagar-Jadcherla road projects within the stipulated time under the Concession Agreement. These projects were being implemented. Besides, GMR Group had won the bid for strengthening and widening the existing two-lane road to four-lane dual carriageways for Tindivanam-Ulundurpet road project on NH-45 in Tamil Nadu for 73 km on BOT basis for a concession period of 20 years. It had executed the concession agreement with NHAI for the project, it added.

UNI VK GD GM1810